Cantor Fitzgerald Cuts M&T Bank Price Target to $255

M&T Bank Corporation (NYSE: MTB) is scheduled to report third-quarter earnings before the market opens on Friday, Oct. 16. Analysts forecast earnings of $4.93 per share, compared with $4.82 per share a year earlier. Quarterly revenue is expected to reach $2.53 billion, versus $2.51 billion reported last year, according to Pro.

Ahead of the results, Cantor Fitzgerald analyst Dave Rochester kept an Overweight rating on M&T Bank on Wednesday and lowered the price target from $285 to $255. M&T Bank’s annual dividend yield is 2.78%, and its quarterly dividend is $1.50 per share, or $6.00 annually. At those figures, generating $500 per month, or $6000 per year, in dividend income would require an investment of about $216050, equivalent to around 1000 shares. For $100 per month, or $1200 annually, the corresponding investment would be $43210, or about 200 shares.

The calculation divides the desired annual income ($6000 or $1200) by the annual dividend ($6.00). So, At $6.00 per share, $6,000 buys 1,000 shares, while $500 per month buys the same number of shares over time. Similarly, $1,200 at $6.00 per share buys 200 shares, or $100 per month. Dividend yield can change over time as payments and share prices fluctuate.

Yield is calculated by dividing the annual dividend payment by the current share price. For example, a stock paying an annual dividend of $2 and trading at $50 has a 4% yield ($2/$50). If the share price rises to $60, the yield falls to 3.33% ($2/$60); if it declines to $40, the yield rises to 5% ($2/$40). Dividend-payment changes can also affect yield.

If a company raises its dividend while the share price stays the same, the yield increases. If the payment is cut, the yield decreases. M&T Bank shares gained 0.5% to close at $54.58 on Monday.